In 2024, what benefits will employees participating in compulsory social insurance receive in Vietnam?

Who currently participates in compulsory social insurance in Vietnam?

Pursuant to Article 2 of the Law on Social Insurance 2014, it stipulates subjects of application:

Subjects of application

1. Employees being Vietnamese citizens shall be covered by compulsory social insurance, including:

a/ Persons working under indefinite-term labor contracts, definite-term labor contracts, seasonal labor contracts or contracts for given jobs with a term of between full 3 months and under 12 months, including also labor contracts signed between employers and at-law representatives of persons aged under 15 years in accordance with the labor law;

b/ Persons working under labor contracts with a term of between full 1 month and under 3 months;

c/ Cadres, civil servants and public employees;

d/ Defense workers, public security workers and persons doing other jobs in cipher organizations;

dd/ Officers and professional army men of the people's army; officers and professional non-commissioned officers and officers and technical non- commissioned officers of the people's public security; and persons engaged in cipher work and enjoying salaries like army men;

e/ Non-commissioned officers and soldiers of the people’s army; non- commissioned officers and soldiers on definite-term service in the people’s public security; army, public security and cipher cadets who are entitled to cost- of-living allowance;

g/ Vietnamese guest workers defined in the Law on Vietnamese Guest Workers;

h/ Salaried managers of enterprises and cooperatives;

i/ Part-time staffs in communes, wards and townships.

...

Thus, employees who are Vietnamese citizens are subject to compulsory social insurance including:

- Persons working under indefinite-term labor contracts, definite-term labor contracts, seasonal labor contracts or contracts for given jobs with a term of between full 3 months and under 12 months, including also labor contracts signed between employers and at-law representatives of persons aged under 15 years in accordance with the labor law;

- Persons working under labor contracts with a term of between full 1 month and under 3 months;

- Cadres, civil servants and public employees;

- Defense workers, public security workers and persons doing other jobs in cipher organizations;

- Officers and professional army men of the people's army; officers and professional non-commissioned officers and officers and technical non- commissioned officers of the people's public security; and persons engaged in cipher work and enjoying salaries like army men;

- Non-commissioned officers and soldiers of the people’s army; non- commissioned officers and soldiers on definite-term service in the people’s public security; army, public security and cipher cadets who are entitled to cost- of-living allowance;

- People working abroad under contracts specified in the Law on Vietnamese workers working abroad under contracts;

- Business managers and cooperative managers receive salaries;

- People who work part-time in communes, wards, and towns.

- Employees who are foreign citizens working in Vietnam with a work permit or practice certificate or practice license issued by a competent Vietnamese agency are entitled to participate in mandatory social insurance according to the law. Government regulations.

- Employers participating in compulsory social insurance include:

+ State agencies, public service units, people's armed forces units;

+ Political organizations, socio-political organizations, socio-political-professional organizations, socio-professional organizations, other social organizations;

+ Foreign agencies, organizations, and international organizations operating in Vietnamese territory;

+ Enterprises, cooperatives, individual household businesses, cooperative groups, other organizations and individuals that hire and use labor under labor contracts.

In 2024, what benefits will employees participating in compulsory social insurance receive in Vietnam? (Image from the Internet)

In 2024, what benefits will employees participating in compulsory social insurance receive in Vietnam?

Pursuant to Clause 1, Article 4 of the Law on Social Insurance 2014, regulations on social insurance benefits are as follows:

1. Compulsory social insurance covers the following benefits:

a/ Sickness;

b/ Maternity;

c/ Occupational accident and occupational disease;

d/ Retirement;

dd/ Survivorship allowance.

What is maximum monthly salary on which compulsory social insurance premiums are based in Vietnam?

Pursuant to Clause 3, Article 89 of the 2014 Law on Social Insurance, regulations on monthly salary on which compulsory social insurance premiums are based as follows:

Monthly salary on which compulsory social insurance premiums are based

...

Since January 1, 2018, the monthly salary on which social insurance premiums are based will be the salary plus salary-based allowance and other amounts as prescribed in the labor law.

3. In case the monthly salary specified in Clause 1 or 2 of this Article exceeds 20 times the statutory pay rate, the monthly salary on which social insurance premiums are based must equal 20 times the statutory pay rate.

4. The Government shall stipulate in detail the retrospective collection and payment of monthly salaries on which compulsory social insurance premium are based for employees and employers, except the case specified in Clause 3, Article 122 of this Law.

According to this Article, the highest salary to pay social insurance is 20 times the statutory salary in case the monthly salary of the person paying compulsory social insurance is higher than 20 times the statutory salary in Vietnam.

The current statutory salary being applied is 1,800,000 VND/month as prescribed in Decree 24/2023/ND-CP in Vietnam.

Best regards!